Vat Number- Key Transparent Measure Introduced For Traders
The Vat registration number is being introduced as a couple of welcome moves to lend support and to maintain the proper transaction in terms of business purposes. Its liabilities are to be counted .It is the synonym of Vat identification number required to identify taxable or non – taxable person coming under the legal procedures of operating Vat. The business holders must get anchored them with the rules and regulations. This measure is strictly to be followed for business purposes.
The business traders who are responsible for active participation of trading, manufacturing, production of goods and for them this system is mandatory to incorporate in business plans. Traditional methods of collection of vat are replaced by the modern methods which is easily attainable by business holders for its flexible and really simplified methods. It is gaining a pace. Vat is charged on the value addition of a product and the business men need to get attuned as per the payment according to rules and regulations. Vat is paid annually for which the business houses need to register to the vat registration of the country. The registration process is easy which takes little time to do. Vat registration replaced Sales tax. It is important to check the vat rates applicable for goods. When the business partners register for the Vat, they are allotted a 11 digit number which is considered and identified as the Vat registration number. Vat registration should be obtained by traders who do trading and produce goods on a rate of more than five lakhs.
Online registration process is available including partnerships. Vat returns need to be submitted to customs. After receiving Vat number, Vat online account can be signed up. Online registration cannot be done when one imports goods from another EU country. Vat registration certificate should be availed within fourteen days. For successful registration to obtain a proper identification number, one need to submit business turnover, business activity and business details.
For proper registration, the following documents need to be provided:
(a)The application and the documents need to be submitted to the local Vat office.
(b) Local Vat office shall conduct an inspection.
Vat registration has certain benefits:
Eligibility for Vat refunds is there. Vat status and dealer status can be easily set by punching in the dealer number.
The online stores which have markets globally spread across European Union, South Africa and India, they must sure have registration for Vat and the Vat identification numbers are crucial. On the customer registration form, a new Vat number can be added. Vat assessing is important element to provide services. Charging, collecting and remitting of Vat should be done to provide services to customers. Vat number can be changed. Vats can be adjusted with the changing location of Vat. Vat number can be declined due to name mismatch, country mismatch, expire Vat ID, Invalid vat format.
The importance of Vat numbers can be judged upon the fact measured to identify tax status of the customer, helps to identify the place of taxation. Vat number can be provided at the time of purchase or even in the time of billing. As per the recommendation of the EU Commission, only the tax administrations have the right to issue a valid Vat number. The tax administration is liable to take care of faults and any difficulties faced in terms of availing the prescribed Vat number. Vat numbers go through certain definite formats like the code of every country must be there in the beginning of each country concerned followed by a block of digits and characters. Vat numbers are must for the prescribed activities like pursuing economic activity, when it makes an intra- EU acquisition of goods.